CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE...

42
CLIMATE CHANGE INTERNATIONAL LEGAL REGIME

Transcript of CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE...

Page 1: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

CLIMATE CHANGEINTERNATIONAL LEGAL REGIME

CLIMATE CHANGEINTERNATIONAL LEGAL REGIME

ABOUT THE COURSE

DISCLAIMER

The Climate Change International Legal Regime course is based on the UN Environment Training Manual on International Environmental Law It has been developed in collaboration with Mr Dan Bondi Ogolla former Coordinator amp Principal Legal Adviser UN Climate Change Framework Convention Secretariat The UN Institute for Training and Research (UNITAR) in the framework of a collaboration with UN Environment has designed the coursersquos new learning architecture and conceived the instructional design approach including interactive learning objects exercises assessments of learning and evaluation The Institute has also produced the course documentation The Climate Change International Legal Regime course is fully aligned with international standards on e-Learning for capacity building

The contents of the course ldquoClimate Change International Legal Regimerdquo do not necessarily reflect the views or policies of UNITAR or UN Environment nor are they an official record The designations employed and the presentation do not imply the expressions of any opinion whatsoever on the part of UNITAR or UN Environment concerning legal status of any country territory or city or its authority or concerning the delimitations of its frontiers or boundaries

CLIMATE CHANGE INTERNATIONAL LEGAL REGIMEThis 3-hour self-paced course has been developed under the InforMEA Project InforMEA is steered by the MEA Information and Knowledge Management (IKM) Initiative with the support of UN Environment and the European Union The MEA IKM initiative currently includes 43 international and regional legally binding instruments from 18 Secretariats hosted by four UN organizations and the International Union for Conservation of Nature (IUCN) Geneva March 2017

ORGANIZATIONS

GLOBAL TREATIES

UN

ROTTERDAM STOCKHOLMBASEL

CITES

UNFCCC

ITPGRFA CMS

FAO UNESCO UNECE IUCN

OZONE

UNCCD

CBD

RamsarWHC

WORLD

HERITAG E

PATRIM

O I

N E

MONDIAL

PATR

IM ON IO

M U N D IAL

4

Module 1 | The Climate Change Convention Regime

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 11

INTRODUCTION

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the causes and effect of climate change

Describe the key provisions commitments and mechanisms established by the UN Framework Convention on Climate Change

THE CLIMATE CHANGE CONVENTIONREGIME

During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that over the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases such as carbon dioxide methane and nitrous oxide in the atmosphere due to human activity

Most greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

Summarize the causes and effects of climate change

Describe the UNFCCrsquos origins and negotiation process

5

Module 1 | The Climate Change Convention Regime

WHAT IS CLIMATE CHANGE

THE GREENHOUSE HOUSE EFFECT

The Earthrsquos climate is affected by the interaction of radiation from the sun and the Earthrsquos atmosphere The atmosphere consists of nitrogen and oxygen and many natural greenhouse gases (including carbon dioxide methane nitrous oxide ozone gas and chlorofluorocarbons (ldquoCFCsrdquo) The atmosphere and the surface of the Earth absorb part of the sunrsquos radiation but the remainder is reflected into space

The greenhouse gases have the important function of trapping this radiation in the lower layers of the Earthrsquos atmosphere This process is called the ldquogreenhouse effectrdquo without which the Earth would be as cold as the moon It is now understood that increased concentrations of greenhouse gases in the atmosphere will increase this greenhouse effect and lead to changes in the Earthrsquos climate

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 2: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

CLIMATE CHANGEINTERNATIONAL LEGAL REGIME

ABOUT THE COURSE

DISCLAIMER

The Climate Change International Legal Regime course is based on the UN Environment Training Manual on International Environmental Law It has been developed in collaboration with Mr Dan Bondi Ogolla former Coordinator amp Principal Legal Adviser UN Climate Change Framework Convention Secretariat The UN Institute for Training and Research (UNITAR) in the framework of a collaboration with UN Environment has designed the coursersquos new learning architecture and conceived the instructional design approach including interactive learning objects exercises assessments of learning and evaluation The Institute has also produced the course documentation The Climate Change International Legal Regime course is fully aligned with international standards on e-Learning for capacity building

The contents of the course ldquoClimate Change International Legal Regimerdquo do not necessarily reflect the views or policies of UNITAR or UN Environment nor are they an official record The designations employed and the presentation do not imply the expressions of any opinion whatsoever on the part of UNITAR or UN Environment concerning legal status of any country territory or city or its authority or concerning the delimitations of its frontiers or boundaries

CLIMATE CHANGE INTERNATIONAL LEGAL REGIMEThis 3-hour self-paced course has been developed under the InforMEA Project InforMEA is steered by the MEA Information and Knowledge Management (IKM) Initiative with the support of UN Environment and the European Union The MEA IKM initiative currently includes 43 international and regional legally binding instruments from 18 Secretariats hosted by four UN organizations and the International Union for Conservation of Nature (IUCN) Geneva March 2017

ORGANIZATIONS

GLOBAL TREATIES

UN

ROTTERDAM STOCKHOLMBASEL

CITES

UNFCCC

ITPGRFA CMS

FAO UNESCO UNECE IUCN

OZONE

UNCCD

CBD

RamsarWHC

WORLD

HERITAG E

PATRIM

O I

N E

MONDIAL

PATR

IM ON IO

M U N D IAL

4

Module 1 | The Climate Change Convention Regime

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 11

INTRODUCTION

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the causes and effect of climate change

Describe the key provisions commitments and mechanisms established by the UN Framework Convention on Climate Change

THE CLIMATE CHANGE CONVENTIONREGIME

During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that over the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases such as carbon dioxide methane and nitrous oxide in the atmosphere due to human activity

Most greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

Summarize the causes and effects of climate change

Describe the UNFCCrsquos origins and negotiation process

5

Module 1 | The Climate Change Convention Regime

WHAT IS CLIMATE CHANGE

THE GREENHOUSE HOUSE EFFECT

The Earthrsquos climate is affected by the interaction of radiation from the sun and the Earthrsquos atmosphere The atmosphere consists of nitrogen and oxygen and many natural greenhouse gases (including carbon dioxide methane nitrous oxide ozone gas and chlorofluorocarbons (ldquoCFCsrdquo) The atmosphere and the surface of the Earth absorb part of the sunrsquos radiation but the remainder is reflected into space

The greenhouse gases have the important function of trapping this radiation in the lower layers of the Earthrsquos atmosphere This process is called the ldquogreenhouse effectrdquo without which the Earth would be as cold as the moon It is now understood that increased concentrations of greenhouse gases in the atmosphere will increase this greenhouse effect and lead to changes in the Earthrsquos climate

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 3: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

CLIMATE CHANGE INTERNATIONAL LEGAL REGIMEThis 3-hour self-paced course has been developed under the InforMEA Project InforMEA is steered by the MEA Information and Knowledge Management (IKM) Initiative with the support of UN Environment and the European Union The MEA IKM initiative currently includes 43 international and regional legally binding instruments from 18 Secretariats hosted by four UN organizations and the International Union for Conservation of Nature (IUCN) Geneva March 2017

ORGANIZATIONS

GLOBAL TREATIES

UN

ROTTERDAM STOCKHOLMBASEL

CITES

UNFCCC

ITPGRFA CMS

FAO UNESCO UNECE IUCN

OZONE

UNCCD

CBD

RamsarWHC

WORLD

HERITAG E

PATRIM

O I

N E

MONDIAL

PATR

IM ON IO

M U N D IAL

4

Module 1 | The Climate Change Convention Regime

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 11

INTRODUCTION

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the causes and effect of climate change

Describe the key provisions commitments and mechanisms established by the UN Framework Convention on Climate Change

THE CLIMATE CHANGE CONVENTIONREGIME

During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that over the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases such as carbon dioxide methane and nitrous oxide in the atmosphere due to human activity

Most greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

Summarize the causes and effects of climate change

Describe the UNFCCrsquos origins and negotiation process

5

Module 1 | The Climate Change Convention Regime

WHAT IS CLIMATE CHANGE

THE GREENHOUSE HOUSE EFFECT

The Earthrsquos climate is affected by the interaction of radiation from the sun and the Earthrsquos atmosphere The atmosphere consists of nitrogen and oxygen and many natural greenhouse gases (including carbon dioxide methane nitrous oxide ozone gas and chlorofluorocarbons (ldquoCFCsrdquo) The atmosphere and the surface of the Earth absorb part of the sunrsquos radiation but the remainder is reflected into space

The greenhouse gases have the important function of trapping this radiation in the lower layers of the Earthrsquos atmosphere This process is called the ldquogreenhouse effectrdquo without which the Earth would be as cold as the moon It is now understood that increased concentrations of greenhouse gases in the atmosphere will increase this greenhouse effect and lead to changes in the Earthrsquos climate

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 4: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

4

Module 1 | The Climate Change Convention Regime

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 11

INTRODUCTION

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the causes and effect of climate change

Describe the key provisions commitments and mechanisms established by the UN Framework Convention on Climate Change

THE CLIMATE CHANGE CONVENTIONREGIME

During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that over the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases such as carbon dioxide methane and nitrous oxide in the atmosphere due to human activity

Most greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

Summarize the causes and effects of climate change

Describe the UNFCCrsquos origins and negotiation process

5

Module 1 | The Climate Change Convention Regime

WHAT IS CLIMATE CHANGE

THE GREENHOUSE HOUSE EFFECT

The Earthrsquos climate is affected by the interaction of radiation from the sun and the Earthrsquos atmosphere The atmosphere consists of nitrogen and oxygen and many natural greenhouse gases (including carbon dioxide methane nitrous oxide ozone gas and chlorofluorocarbons (ldquoCFCsrdquo) The atmosphere and the surface of the Earth absorb part of the sunrsquos radiation but the remainder is reflected into space

The greenhouse gases have the important function of trapping this radiation in the lower layers of the Earthrsquos atmosphere This process is called the ldquogreenhouse effectrdquo without which the Earth would be as cold as the moon It is now understood that increased concentrations of greenhouse gases in the atmosphere will increase this greenhouse effect and lead to changes in the Earthrsquos climate

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 5: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

5

Module 1 | The Climate Change Convention Regime

WHAT IS CLIMATE CHANGE

THE GREENHOUSE HOUSE EFFECT

The Earthrsquos climate is affected by the interaction of radiation from the sun and the Earthrsquos atmosphere The atmosphere consists of nitrogen and oxygen and many natural greenhouse gases (including carbon dioxide methane nitrous oxide ozone gas and chlorofluorocarbons (ldquoCFCsrdquo) The atmosphere and the surface of the Earth absorb part of the sunrsquos radiation but the remainder is reflected into space

The greenhouse gases have the important function of trapping this radiation in the lower layers of the Earthrsquos atmosphere This process is called the ldquogreenhouse effectrdquo without which the Earth would be as cold as the moon It is now understood that increased concentrations of greenhouse gases in the atmosphere will increase this greenhouse effect and lead to changes in the Earthrsquos climate

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 6: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

6

Module 1 | The Climate Change Convention Regime

NATURAL EVENTS

IMPACTS OF GLOBAL WARMING

EMISSION OF GREENHOUSE GASES

Natural events can also cause changes in the climate For example volcanic eruptions or variations in ocean currents can alter the distribution of heat and precipitation The periodic warming of the central and eastern Pacific Ocean (better known as the ldquoEl Nintildeordquo phenomenon) can affect weather patterns around the world causing heavy rains in some places and drought in others

Such a significant increase in the average world temperature will lead to serious impacts on the environment Climate change experts predict that this global warming will cause increased rainfall in many areas increased desertification in others and the loss of ice cover in the polar regions In the worst scenario the average sea level is predicted to rise by up to 098 m by the end of the twenty-first century posing a serious threat to low lying delta systems and small island States

Global warming will also have impacts on natural vegetation and fauna Seasonal patterns will change leading to longer and hotter summers Some species will not be able to adapt well to this change of environment and may slowly die out The most serious consequence is likely to be the impacts on agriculture and thus food security especially due to increased water shortage

Human activities are now recognized as contributing to climate change During recent years scientists have could collect evidence of changes in temperature rainfall and other weather variables This data suggests that in the period 1880 to 2012 the average world temperature increased by 085ordm Celsius The data also demonstrates an increase in the quantity of greenhouse gases in the atmosphere

bull Carbon dioxide (CO2) 40 bull Methane (CH4) 150 bull Nitrous oxide (N2O) 20

CO2 is partly produced because of human activities such as burning coal oil and natural gas (ldquofossil fuelsrdquo) as well as agricultural activities and deforestation CFCs and methane are also being emitted to the atmosphere because of human activities The increase in the emission of these greenhouse gases can be attributed to the general economic growth which has taken place since the industrial revolution after the 1950s as well as increased levels of consumption including the increased demand for electricity and the use of cars

Oceans and forests can absorb CO2 and other greenhouse gases and are therefore referred to as greenhouse gas ldquosinksrdquo Deforestation however releases previously stored greenhouse gases thus contributing further to the increase of greenhouse gases in the Earthrsquos atmosphereMost greenhouse gases remain in the atmosphere for a long period This means that even if emissions from human activities were to stop immediately the effects of the emissions already accumulated may persist for centuries Though the temperature increase from the industrial revolution to the early years of the 21st century has been relatively moderate at around 085ordm Celsius scientists estimate that the global average surface temperature could rise to 48ordm Celsius over the next 100 years

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 7: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

7

Module 1 | The Climate Change Convention Regime

THE CLIMATE CHANGE CONVENTION REGIME

INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE

International conferences on the phenomenon of global warming were first held in the 1980s In 1988 the UN General Assembly (resolution 4353 0f 6 December 1988) recognized that ldquoclimate changerdquo is a common concern of mankindrdquo which required urgent action by all States

In its resolution 45212 of 21 December 1990 the UNGA decided to establish an intergovernmental negotiating process for the preparation by an Intergovernmental Negotiating Committee of ldquoan effective framework convention on climate change containing appropriate commitments and any related instruments as might be agreed uponrdquo

Around the same time the United Nations Environmental Program (UNEP) and the World Meteorological Organization (WMO) established and still co-sponsor an independent scientific body called the Intergovernmental Panel on Climate Change (IPCC)

This body consists of over 2000 scientific and technical experts from around the world who collect scientific information about the causes of climate change its potential effects and possible ways to mitigate these effects The IPCC issued its First Assessment Report in 1990 describing the likely threats of climate change subsequently it produced the Second Assessment Report in 1995 the Third Assessment Report in 2001 the Fourth Assessment Report in 2007 and the Fifth Assessment Report in 2014

In 2007 the IPCC was awarded the Nobel Peace Prize together with US Vice-President Al Gore

ldquofor their efforts to build up and disseminate greater knowledge about man-made climate change and to lay the foundations for the measures that are needed to counteract such changerdquo

PRINCIPLE OF COMMON BUT DIFFERENTIATED RESPONSIBILITIES AND RESPECTIVE CAPABILITIES

The negotiation process for the climate change regime has proved to be one of the most challenging in the history of Multilateral Environmental Agreements (MEAs) Most developing countries have been unwilling to take on onerous commitments arguing that it was mainly the developed countries which had contributed to the increase in global warming as part of their economic development

The States most threatened by the effects of global warming such as Small Island Developing States (SIDS) have argued for strong and effective commitments However several developed countries were concerned about the impact robust commitments to reduce emissions would have on their economies Despite these different positions public concern was strong enough to motivate political leaders towards achieving an international regime to address the problem

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 8: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

8

Module 1 | The Climate Change Convention Regime

Key to the successful negotiation and adoption of the UNFCCC was the explicit agreement on the principle of common but differentiated responsibilities and respective capabilities as the basis for action by States Parties This principle allowed commitments to be fixed according to the socio-economic status of each country with the result that at present only developed countries and countries with economies in transition have specific obligations to achieve quantified emission reductions under the UNFCCC framework

These countries are listed in Annex I of the 1992 UNFCCC and are referred to as Annex I Parties In contrast developing countries can adopt and implement policies and measures to mitigate and to adapt to climate change

All States Parties to the Convention are obliged to develop national programmes to generally mitigate the causes and effects of climate change

LESSON OBJECTIVES

LESSON 12

THE UN FRAMEWORK CONVENTION ON CLIMATE CHANGE

At the end of this lesson you will be able to

Recall the objective and guiding principles for the Convention

Describe key provisions of and commitments under the Convention

Name the arrangements established by the Parties to provide financial support for the implementation of the Convention

OBJECTIVE AND GUIDING PRINCIPLES

The United Nations Framework Convention (UNFCCC) was adopted in New York on 9 May 1992 It entered into force on 21 March 1994 The UNFCC is the central focus of global action on climate change

The objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that allows ecosystems to adapt naturally to climate change so that food production is not threatened while enabling economic development to proceed in a sustainable manner (article 2)

The Parties to the Convention are to be guided by a range of principles that reflect the understanding of global environmental responsibility elaborated in the Rio Declaration on Environment and Development and Agenda 21 These principles include inter-generational equity the precautionary approach the right to sustainable development and as mentioned earlier the principles of equity and common but differentiated responsibilities (article 3)

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 9: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

9

Module 1 | The Climate Change Convention Regime

COMMITMENTS

All Parties to the Convention have general commitments regarding

bull The establishment of national inventories of greenhouse gas emissions and sinksbull The formulation and implementation of policies and measures to mitigate and adapt to climate changebull The sustainable management of forests oceans and ecosystem andbull The integration of climate change considerations in national social economic and environmental policies (article 4(1))

Annex I Parties have taken on additional commitments They are required to individually or jointly return their anthropogenic emissions to 1990 levels by 2000

Annex I Parties are required to adopt national policies and measures to mitigate climate change by both limiting the emission of greenhouse gases and by protecting greenhouse gas sinks However the wording of the 1992 UNFCCC is considered to be rather vague and aspirational It is doubtful whether it represents a binding legal obligation (article 4(2))

In meeting these commitments Parties are able to take account of their different starting points resources economies and other individual national circumstances Parties may also jointly implement policies and measures to mitigate and adapt to climate change

Recognizing that these commitments are only the first step in addressing the problem of climate change the Convention provides for the review of the adequacy of the commitments at an early stage and then at regular intervals (article 4(2)(d)) This provision led to the further negotiations that resulted in the establishment of specific emission reduction targets for Annex I Parties in the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change

REPORTING

To monitor progress in implementation all Parties are required to submit periodic reports containing an inventory of anthropogenic emissions by sources and removals by sinks of all greenhouse gases as well as information on measures taken or envisaged to implement the Convention (article 12(1))

Annex I Parties are required to provide in their reports information on policies and measures adopted to implement the Convention and their net effect as well as information relating to the provision of financial technological and capacity building support to developing country Parties (Article 122)

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 10: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

10

Module 1 | The Climate Change Convention Regime

INSTITUTIONAL ARRANGEMENTS

MEANS OF IMPLEMENTATION

The Conference of the Parties (COP) is the governing body of the Convention and meets regularly to review the adequacy of commitments progress in implementation and effectiveness of the Convention and any related instruments it may adopt such as the Kyoto Protocol

The COP also serves as the formal meeting of the Parties (CMP) for the Kyoto Protocol The first meeting of the CMP was held together with COP-11 in November-December 2005 The COP receives advice from the Subsidiary Body for Scientific and Technological Advice (SBSTA) which reviews and advises on the state of scientific and technical knowledge (article 9) and the Subsidiary Body for Implementation (SBI) which makes recommendations on policy and implementation issues (article 10)

A Secretariat provides organizational support and technical expertise to the Conventionrsquos intergovernmental process supports implementation by Parties ensures the necessary coordination with other international organizations and processes and facilitates the flow of authoritative information on the Convention

Article 4 of the Convention includes important provisions dealing with financial support access to and transfer of technology and capacity building to assist developing country Parties in implementing their commitments A range of measures is identified including the provision of ldquonew and additionalrdquo financial resources access to and transfer of technology and support for national reporting

Article 4(5) of the Convention states that the developed country parties ldquoshall take all practicable steps to promote facilitate and finance as appropriate the transfer of or access to environmentally sound technologies and know-how to other Parties particularly developing country Parties to enable them to implement the provisions of the Conventionrdquo

FINANCIAL MECHANISM

The Conventionrsquos financial mechanism provided for in article 11 is designed to be a major source of such funding Its role is to provide financial resources including for the transfer of technology to developing countries on a grant or concessional basis

The mechanism is guided by and accountable to the COP which decides on policies programme priorities and eligibility criteria The Convention states that the operation of the financial mechanism shall be entrusted to one or more international entities with ldquoan equitable and balanced representation of all Parties within a transparent system of governancerdquo

The COP has designated the Global Environment Facility (GEF) an independent financial institution which provides grants to developing countries for environmental projects and the Green Climate Fund (GCF) as the operating entities of the financial mechanisms

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 11: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

11

Module 1 | The Climate Change Convention Regime

FUNDS

In July 2001 the COP created three new funds to further assist developing countries

The Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF) have been established under the Convention to help developing countries adapt to climate change impacts obtain clean technologies and limit the growth in their emissions

The Kyoto Protocol requires a share of the proceeds from Clean Development Mechanism (CDM) project activities to be utilized to assist developing countries that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation The COP-7 established the Adaptation Fund identified eligible activities and decided that it would be mainly financed by a 2 per cent levy of the proceeds from CDM projects once the Kyoto Protocol came into force

In 2012 it was agreed that international emissions trading and joint implementation would also provide the Adaptation Fund with a 2 per cent share of proceeds for the second commitment period The Fund also receives contributions from governments and private donors The Adaptation Fund funded the first project in 2010 and since then it has committed US$ 200 million The secretariat is in Germany and it is supervised and managed by the Adaptation Fund Board composed of 16 members and 16 alternates

The Green Climate Fund was established by COP-16 and launched by COP-17 The purpose of the Fund is to contribute to global efforts towards low-emission and climate-resilient development pathways It will provide support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change The Fund is governed and supervised by a 24-member Board with full responsibility for funding decisions under the guidance of the COP The Green Climate Fund Secretariat is in South Korea

COMPLIANCE AND DISPUTE SETTLEMENT

The Convention establishes to assess progress in the implementation of the Convention by Parties reporting and review Decisions adopted by the COP have further elaborated on the reporting and review process providing for an international consultation and analysis (ICA) process under the SBI for developing countriesrsquo biennial reports and an international assessment and review (IAR) process under the SBI for developed countries with regard to their emissions targets This process is overseen by the COP

The Convention also allows for the creation of a multilateral consultative process for the parties to resolve questions of implementation (article 13) A compliance regime has been developed under the 1997 Kyoto Protocol

The Convention also contains relatively standard international dispute settlement provisions under article 14 which are similar to those found under the 1985 Vienna Convention1987 Montreal Protocol In the case of a dispute between any two or more parties concerning the interpretation or application of the 1992 UNFCCC the Parties concerned are to seek a settlement of the dispute through negotiation or any other peaceful means of their own choice Recourse can also be taken in certain circumstances to arbitration or the International Court of Justice Article 14 of the Convention applies also to the Kyoto Protocol

emsp

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 12: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

12

Module 2 | The Kyoto Protocol

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 21

NEGOTIATIONS AND MECHANISMS OF THE KYOTO PROTOCOL

At the end of this lesson you will be able to

At the end of this module you will be able to

Explain the negotiation process and the amendments of the Kyoto Protocol

Define the commitments set to Annex B Parties

Describe the 3 flexible mechanisms established to facilitate the implementation of the commitments

Explain other key provisions of the Protocol

THE KYOTO PROTOCOL

Describe the main negotiations steps and the required conditions that allowed the entry into force of the Kyoto Protocol

Identify and describe the commitments targets and the proposed indicative measures set out in the protocol

Identify and describe the flexible mechanisms

Explain and list the requirements to be eligible for each of the flexible mechanisms

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 13: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

13

Module 2 | The Kyoto Protocol

THE NEGOTIATIONS

OUTSTANDING ISSUES

THE MARRAKESH ACCORDS

ENTRY INTO FORCE

At COP-1 held in Berlin in 1995 the parties to the 1992 UNFCCC recognized that in light of further scientific evidence (most prominently the Second Assessment Report released by the IPCC) the commitments in the Convention were ldquonot adequaterdquo to achieve its goal

The outcome of this COP provided a strong political mandate (the Berlin Mandate) for ldquostrengthening the commitments of developed country Parties and other Parties included in Annexrdquo and without introducing ldquoany new commitments for non-Annex I Partiesrdquo which led to the adoption of the text of the Kyoto Protocol to the United Nations Framework Convention on Climate Change (1997 Kyoto Protocol) at the COP-3 in Kyoto in December 1997

Although agreement was reached on the specific terms of the 1997 Kyoto Protocol many crucial technical and political issues were left unresolved including for example operational rules emissions trading and the use of lsquosinksrsquo Most countries felt they could not ratify the 1997 Kyoto Protocol until these issues were settled After further negotiations the Buenos Aires Plan of Action was adopted at COP-4 in 1998 This Plan set out a programme of work on the 1997 Kyoto Protocol operational rules which was scheduled for finalization in 2000

The outstanding issues continued to prove highly controversial and negotiations eventually broke down at COP-6 in The Hague In 2001 President Bush officially announced that the United States the worldrsquos largest emitter of CO2 would not ratify the 1997 Kyoto Protocol on the basis that it would be detrimental to the countryrsquos economy and did not include binding emission reductions for developing countries Despite this the negotiation process was resumed and culminated in 2001 with the achievement of political agreement in the Bonn Agreements which allowed completion of the Marrakesh Accords later that year

The Marrakesh Accords contain extensive and complex provisions to guide the practical implementation of the 1997 Kyoto Protocol These provisions cover the reporting and review process the accounting rules lsquoflexible mechanismsrsquo the establishment of a compliance mechanism and the elaboration of rules on permissible land-use land- use change and forestry (ldquoLULUCFrdquo) The Marrakesh Accords also consolidate matters under the Convention relating to funding arrangements and capacity building for developing countries

In accordance with its Article 25 the 1997 Kyoto Protocol entered into force on the ninetieth day after the date that two conditions were fulfilled

1 Sufficient Annex I countries to account for at least fifty-five per cent of the total CO2 emissions from Annex I countries in 1990 ratified the Protocol2 Fifty-five countries ratified the Protocol

The ratification of Russian Federation deposited on 18 November 2004 triggered entry into force of the Protocol on 16 February 2005

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 14: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

14

Module 2 | The Kyoto Protocol

COMMITMENTS

ANNEX B PARTIESrsquo TARGETS

As intended by the Berlin Mandate the 1997 Kyoto Protocol covers the period beyond the year 2000 and requires stronger commitments from Annex I parties to achieve quantified emission reductions within a specific timeframe

These commitments cover the six greenhouse gases listed in Annex A of the 1997 Kyoto Protocol (carbon dioxide methane nitrous oxide hydrofluorocarbons perfluorocarbons and sulphur hexafluoride) and each Annex I partyrsquos particular ldquoquantified emission reduction targetrdquo is listed in Annex B

These targets are designed to ensure that combined emissions from these lsquoAnnex B partiesrsquo are reduced to at least 5 below 1990 levels between 2008 and 2012 However since emission levels have risen substantially since 1990 this measure is still unlikely to stabilize human induced global warming

In accordance with article 4(2) of the Convention differentiated targets were set for Annex B parties taking into account their particular circumstances including for example their ability to access clean technology

The differentiated emission reduction targets were based on 1990 emission levels and range from an 8 reduction for the EU to a 10 increase for Iceland (called ldquoassigned amountsrdquo) Changes in land use or forest plantations which result in emission reductions can also be used in principle to meet a partyrsquos emission reduction target provided such changes do result in a real reduction (the lsquosinksrsquo must become permanent) Emissions of greenhouse gases other than carbon dioxide are converted to carbon dioxide-equivalent emissions by using Global Warming Potential factors established by the IPCC

All Annex B parties are obliged to make demonstrable progress in meeting their emission reduction targets by 2005 However the 1997 Kyoto Protocol does not actually prescribe how the targets are to be achieved Instead a range of indicative measures are proposed such as

bull Promoting energy efficiencybull Promoting renewable energybull Phasing out subsidies that contravene the objectives of the Conventionbull Protecting and enhancing sinksbull Promoting sustainable forms of agriculture

Under Article 4 of the 1997 Kyoto Protocol two or more Annex B parties can jointly fulfill their commitments by aggregating their emissions As long as the total amount of emissions is within the total assigned amount limits of those parties as a group it does not matter that some members have exceeded their individual limitsemsp

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 15: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

15

Module 2 | The Kyoto Protocol

FLEXIBLE MECHANISMSTo facilitate implementation of the commitments described above the 1997 Kyoto Protocol provides for the use of an innovative set of tools called the ldquoflexible mechanismsrdquo designed to help the Annex I parties maximize the cost-efficiency of meeting their emission reduction targets

These flexible mechanisms allow States Parties (and authorized private or public sector organizations or businesses) to reduce emissions by undertaking projects in other countries or by trading in emission reduction credits and then counting these reductions towards their own emission reduction targets

The use of the flexible mechanisms is subject to the condition that the emission reductions achieved are supplemental to national action to reduce emissions

The 1997 Kyoto Protocol establishes three flexible mechanisms Joint Implementation (JI) the Clean Development Mechanism (CDM) and Emissions Trading (ET)

JOINT IMPLEMENTATION

Eligibility

Joint Implementation as outlined in article 6 provides that one Annex I party can receive credits for supporting (and therefore jointly implementing) appropriate projects to reduce emissions in another Annex I party Such projects result in the generation of ldquoEmission Reduction Unitsrdquo (ERUs) which can be used by the first Annex I party to meet its own 1997 Kyoto Protocol target

This flexible mechanism is designed to encourage the transfer of technology and to promote energy efficiency or forest conservation schemes However the reductions must be lsquoadditionalrsquo to any that would have otherwise occurred and must also be supplemental to domestic actionA Joint Implementation Supervisory Committee (SC) was established under the Marrakesh Accords to oversee the operation of JI projects

To be eligible to take part in a Joint Implementation project a country must

bull Be an Annex I party and a party to the 1997 Kyoto Protocolbull Have an assigned amount that has been calculated and recordedbull Have a national registry in placebull Have in place a national system for estimating greenhouse gas emissionsbull Have submitted annual greenhouse gas inventory reports andbull Have submitted necessary supplementary information on its assigned amount

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 16: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

16

Module 2 | The Kyoto Protocol

ProjectsFollowing decisions taken at COP-7 there will be two kinds of JI projects (twin track)

bull Track 1 covers projects where a lsquohostrsquo party meets all the JI eligibility requirements In this case the host country can certify the ERUs itself without recourse to the Supervisory Committee (SC) bull Track 2 covers projects where a host party only meets the first three JI eligibility requirements Here the procedures are determined by the SC

The ERUs achieved in any JI project must be independently certified by approved organizations called ldquoIndependent Entitiesrdquo

THE CLEAN DEVELOPMENT MECHANISM

The Clean Development Mechanism is designed to encourage emission-reduction projects that assist in achieving sustainable development in developing countries Using this mechanism an Annex I party can support the implementation of eligible projects in non-Annex I parties leading to the generation of Certified Emission Reductions (ldquoCERsrdquo)

The CDM established under article 12 of the 1997 Kyoto Protocol is the only flexible mechanism open to participation by developing countries Under CDM emission reduction projects in developing countries can earn certified emission reduction credits These saleable credits can be used by developed countries to meet a part of their emissions reduction targets under the Kyoto Protocol

EligibilityTo participate in the Clean Development Mechanism a host country must have ratified the 1997 Kyoto Protocol and set up a designated national authority to oversee the approval of the project This national authority must decide whether a CDM project activity contributes to sustainable development in the host country and whether the participants have voluntarily agreed to be involved in the project

ProjectsFor the Certified Emission Reductions to be valid the projectrsquos funding must be in addition to existing development aid provided by the Annex I party and the CERs achieved by the CDM project must be in addition to those that would have occurred without the project For this purpose project baselines must be developed which describe the most likely course of development and the situation that would have prevailed in the absence of the CDM project A project methodology (including the baseline) must be approved for each project Alternatively an existing approved methodology can be adopted A list of proposed and approved CDM methodologies can be found at the website of the UNFCCC

A template for the CDM Project Design Document (PDD) which the project participants must prepare to get CDM project approval is available at the UNFCCC website As of February 2014 a total of 7445 CDM projects had been registered

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 17: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

17

Module 2 | The Kyoto Protocol

Once prepared the PDD must be validated by an independent Designated Operational Entity (DOE) which has been accredited by the EB that in practice will usually be a financial auditing firm The PDD must then be sent for registration by the EB together with confirmation from the host country that the project activity will assist in achieving sustainable development and that the host country voluntarily agrees to participate in the project

The CDM project will then be able to proceed during which it must be monitored by the project participants and independently reviewed from time to time At the end of the CDM project a DOE must certify the resultant CERs by subtracting the emissions achieved from the previously approved baseline emissions (subject to taking account of ldquoleakagerdquo)

Once the certified CERs are verified they can be allocated on the basis agreed between the project participants and issued by the registry of the CDM to be offset against a countryrsquos emissions reduction target

EMISSIONS TRADING

Eligibility

Article 17 of the 1997 Kyoto Protocol allows Annex B parties to participate in emissions trading internationally for the purpose of fulfilling their commitments under the Protocol

Any such trading must be supplemental to domestic actions to reduce emissions Annex B parties can thus transfer or acquire ERUs CERs AAUs or removal units (RMUs) issued in accordance with relevant provisions as long as they meet specified eligibility requirements National entities (individuals or companies) can also participate in the trading of emission reduction units if authorized by a State Party

To be eligible to participate in Emissions Trading Annex B parties must fulfill several requirements bull its assigned amount must have been calculated and recorded bull it must have a national system in place ibull t must also have a national registry in place and bull it must be up to date with its reporting obligations concerning inventories and supplementary information

Each Party is obliged to keep a reserve that cannot be traded under article 17 of the Protocol and should not be allowed to drop beyond 90 of its assigned amount

Any such trading must also be supplemental to domestic emission reduction programmes The option of international emissions trading became available in 2008 though action had already being taken to set up a trading system in the European Union

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 18: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

18

Module 2 | The Kyoto Protocol

LAND USE LAND-USE CHANGE AND FORESTRY (LULUCF)A lsquosinkrsquo stores atmospheric carbon in a carbon lsquopoolrsquo Examples of carbon pools are forest biomass wood products and soils

The inclusion of carbon sinks in the 1997 Kyoto Protocol was very controversial Article 3 of the 1997 Kyoto Protocol provides that parties must count both the sequestration (storage) and the emission of greenhouse gases from eligible land use change and forestry activities (LULUCF) in measuring performance towards their 1997 Kyoto Protocol targets

Only net changes from human induced activities relating to afforestation reforestation or deforestation can be legitimately counted Parties are required to account for the net changes on which they are relying in meeting their commitments and must include emissions from land use change in the baseline used for calculating their assigned amounts Some parties have wanted to include additional types of sinks but it was agreed during negotiations on the 1997 Kyoto Protocol that this would have to be decided at a later stage

CREDITS

Further rules on LULUCF were agreed at COP-7 in Marrakesh where a new trading unit a Removal Unit (ldquoRMUrdquo) was created specifically for sink credits It will be possible to convert RMUs into for example Emission Reduction Units (ldquoERUsrdquo)

Nevertheless the serial number of each ERU will include information about the LULUCF activity for which it was issued and this identification will remain even when the RMU is converted into an ERU

General principles governing the validity of LULUCF activities were also confirmed at COP-7 as follows

bull The assessment of LULUCF activities should be based on lsquosound sciencersquobull Consistent methodologies are to be used for estimating and reporting these activitiesbull The mere presence of carbon stocks is to be excluded from accounting as are increased removals due to faster growth caused by increasing concentrations of atmospheric CO2bull Any reversals of LULUCF removals are to be accounted for at the appropriate time and LULUCF activities must contribute to biodiversity conservation and the sustainable use of natural resources

On top of AAUs and RMUS ERUs generated by a joint implementation project and CERs generated from a clean development mechanism project activity can also be traded in the carbon market

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 19: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

19

Module 2 | The Kyoto Protocol

LESSON OBJECTIVES

LESSON 22

REPORTING AND COMPLIANCE

At the end of this lesson you will be able to

Describe the reporting system provided by the Kyoto Protocol

Identify and explain the main amendments to the Kyoto Protocol

Describe the purpose the structure and the procedures adopted by the Compliance Committee

Explain the procedures for compliance and non-compliance

REPORTING

AMENDMENTS TO THE KYOTO PROTOCOL

A key feature of the climate regime is the reporting system The reporting rules provided under the Convention and the 1997 Kyoto Protocol have therefore been designed to facilitate transparency comparability completeness and accuracy of information Parties must submit periodic national communications which contain information on national circumstances vulnerability assessment financial resources and transfer of technology and education training and public awareness

Annex I parties to the Protocol must also add their annual inventories of emissions and removals of GHGs to demonstrate compliance with the Protocolrsquos commitments

Least-developed countries also submit their National Adaptation Programmes of Action which address their adaptation priorities

2006 AMENDMENT TO ANNEX B

The Amendment to Annex B was adopted by CMP-2 to include Belarus in Annex B to assume a quantified emission reduction commitment (QELRC)

It is not into force yet According Articles 20 and 21 of the Kyoto Protocol at least three fourths of the Parties to the Protocol shall deposit instruments of acceptance with the Depositary for an amendment to enter into force As of February 2014 only 28 Parties had accepted the amendment

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 20: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

20

Module 2 | The Kyoto Protocol

2012 DOHA AMENDMENT

CMP-8 adopted a decision to amend the Kyoto Protocol to establish a second period from 2013 to 2020 It establishes new QELRC for Annex B parties and adds a new greenhouse gas (nitrogen trifluoride) to the Protocolacutes Annex A It also amends Article 31 to include the objective of reduce Annex I parties emissions by at least 18 below 1990 levels and the possibility that Annex B parties may propose an adjustment to decrease its QELRC to be voted by the CMP Annex I parties may increase the ambition of the QELRC as they have to revisit their individual second commitment period QELRC by 2014 at the latest

Regarding the eligibility to participate in the flexible mechanism the amendment establishes that

bull All Annex I parties can continue on-going and new CDM projects but only parties with second commitment period QELRCs can transfer and acquire CERs in the second commitment periodbull Only parties with second commitment period QELRCs can transfer and acquire CERs AAUs ERUs and RMUs valid for emissions trading in the second commitment periodbull The Adaptation Fund levy shall be augmented to a 2 per cent share of the proceedsbull Carry-over of surplus AAUs shall follow certain criteria

The Amendment will enter into force in accordance with Articles 20 and 21 of the Kyoto Protocol which requires that Parties shall deposit instruments of acceptance with the Depositary The Amendment will enter into force on the ninetieth day after the deposit of an instrument of acceptance by at least three fourths of the Parties to the Protocol As of April 2015 only 28 Parties had accepted the amendment

The CMP recognized that parties may provisionally apply the Doha Amendment pending its entry into force

COMPLIANCE COMMITTEECompliance was one of the most contentious issues at COP-7 in Marrakesh but the parties eventually adopted compliance procedures which represent the lsquoteethrsquo of the climate change regime

The Marrakesh Accords provide for the creation of a new institution the Compliance Committee charged with promoting compliance providing advice and assistance to the parties determining cases of non-compliance and applying appropriate ldquoconsequencesrdquo for non-compliance The Compliance Committee has two branches a lsquoFacilitative Branchrsquo and a more judicial-like lsquoEnforcement Branchrsquo

provides advice and assistance on the implementation of the Kyoto Protocol giving out lsquoearly-warningsrsquo in cases where a party is in danger of not complying with its commitments under the Protocol It makes recommendations and mobilizes financial and technical resources to help the party comply

FACILITATIVE BRANCH

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 21: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

21

Module 2 | The Kyoto Protocol

determines whether an Annex I party has met its emissions target complied with its monitoring and reporting requirements and met the eligibility tests for participation in the flexible mechanisms

ENFORCEMENT BRANCH

The compliance procedures are triggered primarily by reports of expert review teams (ERTs) under Article 8 of the Protocol A Party may also trigger the procedures with respect to itself or with respect to another Party

The Bureau of the Compliance Committee is responsible for allocating questions of implementation to the appropriate branch The Enforcement Branch makes decisions by double majority voting so that majorities from each bloc of the members of a branch (ie both Annex I and non-Annex I parties) must approve it Public participation in the proceedings is possible If a party feels that it has been denied due process during the enforcement proceedings it can lodge an appeal with the CMP

PROCEDURE

NON - COMPLIANCEWhen a party is found to be in non-compliance with its commitments the Enforcement Branch can require the relevant party to submit an action plan that includes an analysis of the causes of non-compliance undertake corrective measures to remedy the non-compliance and set a timetable for the implementation of the action plan

If an Annex I party is not in compliance with the eligibility requirements for the Protocolrsquos flexible mechanism the Enforcement Branch is able to order the suspension of the Partyrsquos eligibility to participate in the mechanisms until the party has achieved compliance

If an Annex I party fails to meet it emission reduction target the Enforcement Branch can apply the following consequences

bull The non-complying Party is required to make up the difference between its emissions and its assigned amount during the second commitment period plus an additional deduction of 30bull The party will have to prepare a detailed plan explaining how it will meet its target for the subsequent compliance period andbull The party will not be able to use international emissions trading to sell any of its emissions allocation until it has demonstrated that it will be able to comply with its current target

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 22: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

22

Module 3 | The Paris Agreement

MODULE OBJECTIVES

LESSON OBJECTIVES

LESSON 31

INTRODUCTION TO THE PARIS AGREEMENT

At the end of this lesson you will be able to

At the end of this module you will be able to

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

THE PARIS AGREEMENT

Describe the steps in the negotiation process of the Paris Agreement

Describe the building blocks and main provisions of the Paris Agreement

Describe relevant provisions of the decision adopting the Paris Agreement

Identify the first steps to be taken after the entry into force of the Agreement

Describe the mitigation aim of the Agreement

This module summarizes the key provisions and relevant provisions of the decision adopting the Paris Agreement (Decision 1CP21 also called the ldquoadopting decisionrdquo in this course) Paragraph numbers from the adopting decision text are indicated with a sect symbol For clarity each article has been given a title in this course although titles are not included in the Paris Agreement

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 23: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

23

Module 3 | The Paris Agreement

The Bali Road Map

The Copenhagen Accord

The Cancun Agreements

The Durban Outcomes

NEGOTIATIONS TOWARD THE 2015 CLIMATE CHANGE AGREEMENT

In 2007 at COP13 Parties agreed on the Bali Road Map as a framework for the negotiation of further commitments and enhanced cooperative action

It was a two-tracked negotiating process the Ad-Hoc Working Group on the Long-Term Cooperative Action (AWG-LCA) was established under the Convention and in parallel the Ad Hoc Working Group on Further Commitments for Annex I parties under the Kyoto Protocol (AWG-KP) established under the Protocol in 2005 would continue its work with respect to a second commitment period of the Protocol

Negotiations under the AWG-LCA focused on the five negotiating blocks of the Bali Action Plan shared vision mitigation adaptation technology and financing The mandate of AWG-LCA was extended several times until 2012

In 2009 COP-15 took note of the Copenhagen Accord Even if it is did not meet the high political expectations raised the non-legally binding Accord allowed Parties to submit emissions reductions pledges or national mitigation action pledges and planted the seed for the eventual establishment of the Green Climate Fund

The Cancun Agreements were adopted by COP-16 in 2010 This set of decisions established the Green Climate Fund the Technology Mechanism consisting of the TEC and the CTCN and the Cancun Adaptation Framework

Regarding mitigation developed countries submitted plans to reduce emissions up to 2020 and developing countries proposed action to limit their emissions growth

A major break-through was achieved in 2011 by COP-17 Parties reached political agreement on a second commitment period under the Kyoto Protocol and also established the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) with the mandate to develop a protocol another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties to be adopted in 2015 by COP-21 and come into effect and be implemented from 2020 The COP also launched work-stream two under the ADP dedicated to enhance mitigation action in order to close the ambition gap pre-2020 See the Durban Outcomes

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 24: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

24

Module 3 | The Paris Agreement

The Doha Climate Getaway

At COP 18 in Doha Parties agreed on an 8-year second commitment period of the Kyoto Protocol starting from January 2013 and ending on 31December 2020 with the adoption of the Doha Amendment to the Kyoto Protocol

The Warsaw Outcomes

Climate change and ozone depletion

COP19CMP9 advanced on the path set by the Durban Platform and moved closer to the start of the operations of the Green Climate Fund The Warsaw Framework for REDD Plus was adopted Parties had worked on reducing emissions from deforestation and forest degradation in developing countries since 2005

The Warsaw Framework establishes the foundation and coordinates global support to forest conservation and sustainable use with result-based payments to developing countries Parties also agreed to establish the Warsaw international mechanism for loss and damage associated with climate change impacts in developing countries that are particularly vulnerable to the adverse effects of climate change

An interesting issue to follow up on links with other MEAs and the need for a coordinated approach in MEA implementation is the relationship between the ozone depleting substances being phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and their alternatives that may contribute to climate change

In this regard Paragraph 222 of the Rio +20 Outcome document recognized that the phase out of the ozone depleting substances is resulting in a rapid increase in the use and release into the atmosphere of hydrofluorocarbons (HFCs) with high global warming potentials and supported a gradual phase out in the consumption and production of these hydrofluorocarbons

ADOPTION AND ENTRY INTO FORCE

PREAMBLE

The Paris Agreement was adopted on 12 December 2015 at the 21st session of the Conference of the Parties (COP 21) of the UN Framework Convention on Climate Change (UNFCCC) in Paris It entered into force on 4 November 2016 once the threshold for entry into force of the Paris Agreement was achieved ie 30 days after the dual entry into force requirement of ratification by at least 55 countries representing at least 55 of global GHG emissions was met

While the preamble of an international treaty does not create rights and obligations between Parties it normally sets the wider context for the agreement

The preamble of the Paris Agreement captures a number of familiar and new concepts in 15 sentences It broadly reflects the objective and principles of the UNFCCC albeit ldquoin the light of different national circumstancesrdquo This framing occurs throughout the Agreement and signals a shift in the way equity and common but differentiated responsibilities and respective capabilities (CBDRRC) are interpreted and operationalized

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 25: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

25

Module 3 | The Paris Agreement

The preamble further refers to the need for an effective response ldquoon the basis of the best available scientific knowledgerdquo It recognizes the specific needs and special circumstances of developing country Parties particularly the most vulnerable and the ldquospecific needs and special situations of the least developed countries with regard to funding and transfer of technologyrdquo

The second half of the preamble incorporates new themes that are not found in the UNFCCC These include the priorities of safeguarding food security and ending hunger the need for a just transition of the workforce and engagement with all levels of government and various actors The diversity of issues in the latter provisions of the preamble underlines that climate change is no longer perceived as solely an environmental problem ndash it cuts across and affects all areas of society

Moreover it calls on Parties to respect and promote human rights the right to health the rights of indigenous peoples local communities migrants children persons with disabilities and people in vulnerable situations the right to development gender equality the empowerment of women and intergenerational equity The need for sustainable lifestyles and sustainable patterns of consumption and production with developed country Parties taking the lead is also recognized

Article 1 states that the definitions contained in the UNFCCC (climate change greenhouse gases sinks etc) will apply to the Paris Agreement In addition it defines ldquoConventionrdquo ldquoConference of the Partiesrdquo (COP) and ldquoPartyrdquo in the context of the Agreement Article 21 of the Agreement includes another definition ndash ldquototal global greenhouse gas emissionsrdquo for the limited purpose of determining the Agreementrsquos entry into force

Earlier drafts of Article 1 included additional definitions ndash in particular of the terms ldquodevelopedrdquo and ldquodevelopingrdquo country Parties While these terms are not defined they are still used in several provisions of the new Agreement Whether and to what extent the existing binary differentiation between Annex I and non-Annex 1 countries under the UNFCCC will influence the understanding of ldquodevelopedrdquo and ldquodevelopingrdquo country Parties under the Agreement (for instance which Parties belong to each category or how they might move between them) is likely to be a contentious issue in future negotiations

Article 2 outlines the purpose of the Agreement Article 21 seeks to enhance the implementation of UNFCCC Article 2 to prevent dangerous anthropogenic interference with the climate system It aims to do so by strengthening the global response to climate change in general including by committing to a long-term temperature goal enhancing adaptive capacity and climate resilience and making finance flows consistent with low-emission development pathways

Article 1 DEFINITIONS

Article 2 PURPOSE

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 26: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

26

Module 3 | The Paris Agreement

LONG-TERM TEMPERATURE GOAL

DIFFERENTIATION

The long-term temperature goal includes two targets for maximum global warming Parties to the Agreement will commit to ldquo[hold] the increase in the global average temperature to well below 2degC above pre-industrial levelsrdquo and ldquoto pursue effortsrdquo to limit the temperature increase to 15degC To date the 2degC target has been the working assumption for most nations in their mitigation efforts including the planning and preparation of intended nationally determined contributions (INDCs) before Paris The 15degC target was included as the result of a concerted push by an alliance of vulnerable States including the LDCs SIDS and the Independent Association of Latin America and the Caribbean but is still considered an aspirational goal by some States

Article 22 states that the Agreement will be implemented to reflect equity and CBDRRC in the light of different national circumstances This language underlines the shift away from the formal differentiation between developed and developing country Parties (under the UNFCCC and the Kyoto Protocol) towards a more nuanced self-differentiated model As a result of this new approach under the Paris Agreement there is no longer a ldquofirewallrdquo (in terms of obligations) between developed and developing countries

While the Agreement still uses the existing terminology of ldquodevelopedrdquo and ldquodevelopingrdquo countries it does not offer any clarifying definitions The annexes and provisions of the UNFCCC also remain in place and will therefore have some influence over the interpretation of the Agreement It is worth noting that ldquonational circumstancesrdquo is also not defined thus creating a wide-open field for different national concerns Nevertheless it is likely to become increasingly more relevant than ldquohistorical responsibilityrdquo when Parties decide on and submit their contributions under the Agreement

The foundation of the Agreementrsquos structure is that all Parties will determine at the national level what actions they are able and willing to take in achieving the purpose of the Agreement Article 3 provides an overarching outline of this approach In this context Parties can undertake and communicate their efforts on mitigation adaptation finance technology transfer and capacity building as well as on transparency as part of their Nationally Determined Contributions (NDCs) These efforts should become progressively more ambitious over time

While Article 3 recognizes the need to support developing country Parties in implementing the new Agreement developing country efforts are not contingent on the upfront provision of support (as envisaged in previous drafts of the Paris Agreement and generally under the UNFCCC)However Article 3 only

Article 3 NATIONALLY DETERMINED CONTRIBUTIONS

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 27: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

27

Module 3 | The Paris Agreement

provides an overarching outline of the AgreementrsquorsquosAgreementrsquos underlying approach and uses ldquonationally determined contributionsrdquo in a wider sense than the nationally determined mitigation contributions in Article 4 The particular measures expected of Parties with regard to the different components of the Agreement (mitigation adaptation etc) and relevant arrangements are addressed in the Articles 4-12

The mitigation aim of the Agreement is for Parties ldquoto reach global peaking of greenhouse gas emissions as soon as possible recognizing that peaking will take longer for developing country Parties and to undertake rapid reductions thereafter [hellip] so as to achieve a balance between anthropogenic emissions by sources and removals by sinks [hellip] in the second half of this century [hellip]rdquo (Article 41)

The language on ldquobalancerdquo between sources and removals by sinks was used as a proxy for ldquocarbon neutralityrdquo or a ldquonet zerordquo goal both of which also proved to be too politically controversial to be included Although developing countries managed to insert that the aim is to be achieved ldquoon the basis of equity and in the context of sustainable development and efforts to eradicate povertyrdquo (Article 41) it is not clear yet what it entails or how this provision will be implemented in practice

Article 4 MITIGATION

NATIONALLY DETERMINED CONTRIBUTIONS

All Parties are expected to communicate NDCs (Article 42) every five years (Article 49) and put in place domestic mitigation measures to achieve them taking into account the global stocktake (Article 49) and reflecting CBDRR in light of different national circumstances (Article 43)

The main obligation of Parties under the Agreement therefore is procedural in nature (prepare communicate and update mitigation NDCs) The phrase ldquopursue domestic mitigation measuresrdquo (Article 42) could be interpreted as an additional substantive obligation Moreover whether NDCs encapsulate commitments that are binding on government entities under domestic law is a matter of national and (in the case of the EU) supranational law

While developed countries are expected to continue to apply economy-wide emission caps developing countries are encouraged to move towards them over time (Article 44) and are entitled to receive support for their mitigation actions (Article 45)

Information to be communicated in relation to NDCs should be clear and transparent (Article 48) in accordance with guidance from the CMA on the communication of such information (Article 413) while taking into account existing methods and guidance under the UNFCCC (Article 414) They will be recorded in a public registry maintained by the UNFCCC Secretariat (Article 412) which will also serve as the Secretariat to the Agreement

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 28: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

28

Module 3 | The Paris Agreement

The CMA is considering the issue of common time frames for NDCs at its first session (Article 410) However a Party can adjust its existing NDC at any time to enhance its level of ambition (Article 411) Successive NDCs have to reflect a Partyrsquos highest possible ambition and be progressively more ambitious over time (Article 43)

Parties including regional economic integration organizations and their member States can act jointly but must notify the Secretariat of the emission levels allocated to each Party within the relevant time period when they communicate their NDCs (Article 416) with each Party ultimately responsible for its allocated emission levels (Article 417) In the case of joint action taken by the EU member States each member State individually and the EU as a whole as a Party to the Agreement will be responsible for the allocated emission level (Article 418)

The decision adopting the Paris Agreement provides further guidance on the NDCs It invites Parties to communicate their first NDCs when they join the Agreement Parties that have already submitted an INDC are considered to have satisfied this requirement (sect22) Parties with a five-year INDC are urged to submit a new NDC by 2020 (sect23) Parties with a ten-year INDC timeframe are requested to submit a new NDC or update their existing one by 2020 and every five years thereafter (sect24) Parties are to submit their NDCs to the Secretariat 9 to 12 months ahead of the ldquorelevantrdquo CMA session for each contribution cycle (sect25) Parties will determine the session at which NDC will be included in the agenda

When communicating NDCs Parties may include quantifiable information on the reference point (such as a base year) time frames andor periods for implementation scope and coverage planning processes assumptions and methodological approaches as well as information regarding the fairness and ambitiousness of the NDCs (sect27)

The Ad Hoc Working Group on the Paris Agreement (APA) is requested to develop further guidance for consideration and adoption by the CMA at its first session (CMA 1) on NDC features (sect26) clarifying information to be provided by Parties regarding NDCs (sect28) and accounting for NDCs (sect31) Parties will apply this accounting guidance from the second NDC onwards (but may choose to do so for their first NDC also) (sect32)

In addition the Subsidiary Body for Implementation (SBI) is requested to develop procedures for the NDC registry for adoption at CMA 1 (sect29) In the meantime an interim public registry has been made available by the Secretariat (sect30) As of February 2017 127 Parties have submitted their first NDCs

DECISION ON NDCS

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 29: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

29

Module 3 | The Paris Agreement

Article 419 calls on all Parties including LDCs and SIDS (Article 46) to strive to formulate and communicate Low Emission Development Strategies (LEDS) The adopting decision calls for these LEDS to be submitted by 2020 and to include mid-century long-term strategies which will be published on the UNFCCC website (sect35)

Mitigation co-benefits resulting from adaptation actions or economic diversification efforts can count towards mitigation contributions (Article 47)

Parties shall take into full consideration in the implementation of the commitments of the Convention the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures

The concerns of Parties most affected by the impacts of response measures have to be taken into consideration by other Parties (Article 415) A decision was also taken to continue the existing Forum on the Impact of the Implementation of Response Measures which was established in 2010 at the sixteenth session of the UNFCCC Conference of Parties (COP 16) in Cancun The Forum will serve the Agreement under the Subsidiary Bodies (sect33) which will recommend modalities and a work programme for the Forum for adoption at CMA 1 (sect34)

LOW EMISSION DEVELOPMENT STRATEGIES

IMPACTS OF RESPONSE MEASURES

Article 51 calls on Parties to take action to conserve and enhance biomass forest oceanic and other greenhouse gas sinks and reservoirs

They are encouraged to implement and support the framework already set out in existing UNFCCC guidance and decisions for policy approaches and positive incentives to reduce emissions from deforestation and forest degradation and the role of conservation sustainable management of forests and enhancement of forest stocks in developing countries and alternate policy approaches such as joint mitigation and adaptation while incentivizing non- carbon benefits associated with such approaches (Article 52)

The Agreement recognizes that Parties can choose ldquovoluntary cooperationrdquo to implement their NDCs to allow for higher ambition both in mitigation and adaptation (Article 61) and could include market-based and non-market based approaches

Article 5 GREENHOUSE GAS SINKS AND RESERVOIRS

Article 6 COOPERATIVE APPROACHES

30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

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30

Module 3 | The Paris Agreement

Two different but not mutually exclusive market-based approaches are included in the Agreement

Internationally Transferred Mitigation Outcomes (ITMOs) between two or more Parties similar to Joint Implementation under the Kyoto Protocol used for project-based trading between developed (Annex I) countries and

A centralized global Sustainable Development Mechanism (SDM) likely to mirror the Kyoto Protocolrsquos Clean Development Mechanism most closely

ITMO cooperation is voluntary and must be authorized by the participating Parties (Article 63) Article 62 allows Parties to use ITMOs as long as they promote sustainable development ensure environmental integrity and transparency (including in governance) and apply robust accounting procedures consistent with CMA guidance The adopting decision requests the Subsidiary Body for Scientific and Technological Advice (SBSTA) to develop guidance for ITMOs for adoption at CMA 1 (sect36) The need to avoid double-counting and transparent reporting is also emphasized in the adopting decision under Enhanced Action Prior to 2020 (sectsect106 and 107)

Article 6 does not restrict the kinds of mitigation outcomes that could be transferred ITMOs could involve linked networks of carbon pricing mechanisms such as regionally linked emission trading schemes (for instance the linkage between the California and Quebec emission trading schemes) but also other linkages possibly involving the transfer of technology or even finance

Article 64 meanwhile establishes an SDM to contribute to mitigation and support sustainable development provided there is no double counting (Article 65) CMA 1 will adopt rules for the SDM (Article 67) The adopting decision provides some guidance to the CMA recommending that the SDM reflects voluntary participation and Party authorization ensures measurable long-term mitigation benefits which are additional is based on specific scopes of activities with verification and certification of emission reductions and takes into account experiences from existing mechanisms under the UNFCCC which would include the CDM (sect37) The decision also requests the SBSTA to develop these rules modalities and procedures for the SDM for adoption at CMA 1 (sect38)

A share of proceeds from SDM activities will be used to cover administrative expenses and for adaptation in particularly vulnerable developing countries (Article 66) What this share will be and how it will be used will probably be decided as part of the SDM rules modalities and procedures to be adopted at CMA 1

MARKET-BASED APPROACHES

INTERNATIONALLY TRANSFERRED MITIGATION OUTCOMES (ITMOS)

SUSTAINABLE DEVELOPMENT MECHANISM (SDM)

31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

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31

Module 3 | The Paris Agreement

The Agreement also defines a framework for Non-Market Approaches or NMAs (Article 69) to assist Parties in implementing NDCs These NMAs should aim to promote mitigation and adaptation ambition enhance public and private sector participation in implementing NDCs and enable coordination across instruments and institutional arrangements (Article 68)

The adopting decision calls on SBSTA to undertake a work programme under the NMAs framework with the objective of considering how to enhance linkages and create synergies between inter alia mitigation adaptation finance technology transfer and capacity building and how to facilitate the implementation and coordination of NMAs (sect39) SBSTA is requested to draft a decision on the work programme for adoption at CMA 1 (sect40)

NON-MARKET APPROACHES (NMAS)

The Agreement establishes a ldquoglobal goal on adaptationrdquo to enhance adaptive capacity strengthen resilience and reduce vulnerability to climate change (Article 71) Adaptation is recognized as a key component of the long-term global response to climate change and an urgent need of developing country Parties (Article 72) The importance of continuous and enhanced support for their adaptation efforts is also recognized (Articles 76 and 713) ndash especially for Parties that are particularly vulnerable to the adverse effects of climate change (Articles 72 and 76)

Adaptation action should follow a country-driven gender-responsive participatory and transparent approach that takes into account the interests of vulnerable groups communities and ecosystems (Article 75) Adaptation action should be based on and guided by ldquothe best available science and as appropriate traditional knowledge knowledge of indigenous peoples and local knowledge systems with a view to integrating adaptation into relevant socioeconomic and environmental policies and actions where appropriaterdquo (Article 75) Parties should also collectively strengthen cooperation on adaptation action taking into account the Cancun Adaptation Framework including through information sharing strengthening institutional arrangements assisting developing country Parties in assessing needs and improving the effectiveness and durability of actions (Article 77)

Individually each Party is required as appropriate to engage in adaptation planning processes and the implementation of actions plans and policies such as for example formulating national adaptation plans (NAPs) assessing climate change impacts and vulnerability and building resilience (Article 79)

Article 7 ADAPTATION

Parties should submit an adaptation communication on adaptation priorities needs plans and actions (Article 710) This communication must be submitted and updated periodically as appropriate as a component of or in conjunction with other communications such as NAPs NDCs or national communications (Article 711)

ADAPTATION COMMUNICATION

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 32: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

32

Module 3 | The Paris Agreement

Similar to mitigation NDCs adaptation communications will be housed in a public registry maintained by the UNFCCC Secretariat (Article 712) SBI is considering modalities and procedures for the operation and use procedures for the adaptation communication registry

Articles 79 to 712 reflect formal procedural commitments by Parties on adaptation (to engage in adaptation planning and to submit and update adaptation communications) However these commitments are qualified by ldquoshall as appropriaterdquo and ldquoshouldrdquo and are therefore of limited binding nature The Agreement further emphasizes that these communications should not create any additional burden for developing country Parties (Article 710) Modalities on how adaptation efforts by developing country Parties will be recognized will be adopted at CMA 1 (Article 73)

At the Marrakech session the CMA invited the APA through the COP to continue its work on further guidance in relation to the adaptation communication including inter alia as a component of NDCs referred to in Article 7 paragraphs 10 and 11 of the Paris Agreement to conclude this work as soon as possible and to forward the outcomes at the latest to the third part of the first session of the CMA in 2018

Adaptation is part of the Article 14 global stocktake which will recognize adaptation efforts of developing countries enhance the implementation of adaptation action review the adequacy and effectiveness of adaptation and support provided and review overall progress in achieving the global adaptation goal (Article 714)

To prepare for the application of the Agreement the adopting decision tasks the Adaptation Committee and the Least Developed Countries Expert Group (LEG) with jointly developing methodologies and making recommendations on facilitating the mobilization of support and reviewing the adequacy and effectiveness of adaptation and support in connection with the global stocktake (sect45) In addition the Adaptation Committee is reviewing the work of adaptation- related institutional arrangements under the UNFCCC to identify ways to enhance coherence and consider methodologies to assess adaptation needs (sect42)

The Green Climate Fund (GCF) is asked to expedite support for LDCs and other developing country Parties for formulating NAPs and their subsequent implementation (sect46) Relevant UN agencies and other financial institutions are also invited to provide information on how their development assistance and climate finance programmes incorporate climate-proofing and climate resilience measures (sect43) Elements related to adaptation finance are also included in Article 9 on finance and discussed later in this course

The adopting decision further requests Parties to strengthen regional cooperation on adaptation and to establish regional centers and networks (sect44)

ADAPTATION AND THE GLOBAL STOCKTAKE

ADAPTATION SUPPORT

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 33: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

33

Module 3 | The Paris Agreement

Whether to include a provision on loss and damage due to climate change in the Agreement either in a separate Article or in the Article on adaptation or leave it out of the Agreement altogether was a very contentious issue up to the end of the Paris negotiations The compromise reached was to have a separate Article on loss and damage with a reference to the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) and to reflect key divergences in the decision text

Article 8 LOSS AND DAMAGE

In November 2013 COP-19 established the Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts (WIM) to address loss and damage associated with impacts of climate change including extreme events and slow onset events in developing countries that are particularly vulnerable to the adverse effects of climate change

The WIM has three functions

1 Enhancing knowledge and understanding of comprehensive risk management approaches to address loss and damage associated with the adverse effects of climate change including slow onset impacts2 Strengthening dialogue coordination coherence and synergies among relevant stakeholders 3 Enhancing action and support including finance technology and capacity- building to address loss and damage associated with the adverse effects of climate change so as to enable countries to undertake actions

In Paris Parties ultimately decided to continue the WIM following the 2016 review (sect47) A 5-year rolling workplan was approved in Marrakech

The WIM will serve the Agreement (Article 82) after 2020 the incorporation of the WIM into the Agreement may enhance and strengthen it Parties are expected to enhance understanding action and support with respect to loss and damage associated with the adverse effects of climate change including through the WIM (Article 83) In this regard the Agreement provides a non-exhaustive indicative list of areas for cooperation and facilitation for instance early warning systems slow onset events and other events that may involve irreversible and permanent loss and damage and risk-related actions (Article 84)

In addition the adopting decision tasks the Executive Committee of the WIM with establishing a clearinghouse for information on risk transfer and insurance (sect48) creating a task force to develop recommendations for approaches to climate change induced displacement (sect49) and reporting on progress in its annual report (sect50)

WARSAW INTERNATIONAL MECHANISM FOR LOSS AND DAMAGE

Finally the adopting decision text on loss and damage contains the statement that Article 8 ldquodoes not involve or provide a basis for any liability or compensationrdquo (sect51)

NO BASIS FOR LIABILITY OR COMPENSATION

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 34: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

34

Module 3 | The Paris Agreement

LESSON OBJECTIVES

LESSON 32

IMPLEMENTATION AND COMPLIANCE

At the end of this lesson you will be able to

Explain how the provision reporting and management of climate finance is addressed in the Agreement

Explain how the Agreement emphasizes the capacity building needs of developing country Parties

Explain the purpose of the enhanced transparency framework and the Global Stocktake

Describe the mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The issue of differentiation in the finance context was a controversial topic in the negotiations should only developed countries be required to provide financial support or should developing countries and emerging economies also contribute

Article 9 FINANCE

This question was eventually resolved by stating that developed countries ldquoshallrdquo provide climate finance for developing countries (Article 91) while other Parties (developing countries) are ldquoencouragedrdquo to provide support voluntarily (Article 92) Developed countries ldquoshouldrdquo also take the lead in mobilizing climate finance ldquofrom a wide variety of sources instruments and channelsrdquo progressing beyond previous efforts (Article 93)

The idea that public funds distinct from official development assistance will be the main source of financing was dropped from the Agreement during the final days of negotiation Instead Article 93 simply notes ldquothe significant role of public fundsrdquo

Unlike the Cancun Agreements which contained a collective public sector (lsquofast-startrsquo) finance target the Paris Agreement has no reference to such a target The adopting decision states that the existing collective mobilization goal (US$100 billion per annum by 2020 first announced at the 2009 Copenhagen COP) will continue until 2025 The CMA will set a new collective quantified goal with US$100 billion as a floor prior to 2025 (sect53)

DIFFERENTIATION

PUBLIC OR PRIVATE FINANCE

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 35: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

35

Module 3 | The Paris Agreement

The Sustainable Development Goals adopted by the United Nations General Assembly in 2015 echoed this collective commitment in its Target 13A ldquoImplement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possiblerdquo

The Agreement includes the provision that financial resources should aim to achieve a balance between adaptation and mitigation taking into account country-driven strategies the priorities and needs of developing countries in particular LDCs and SIDS (Article 94) This provision has featured in several climate instruments including in the 2009 Copenhagen Accord and in the 2010 Cancun Agreements

The UNFCCCrsquos Financial Mechanism including its operating entities will serve as the financial mechanism of the Agreement (Article 98) The adopting decision also states that the GCF the Global Environment Facility (GEF) the Least Developed Countries Fund and the Special Climate Change Fund will serve the Agreement (sect58) In the adopting decision the COP recommends that CMA provide guidance to the GEF and the GCF relating to the Agreement for transmission by the COP (sect61) Existing and future COP guidance on the operation of the Financial Mechanism will apply to the Agreement as appropriate with the necessary changes made (sect62)

Developed countries have to biennially communicate indicative information on the provision of climate finance to developing countries including ldquoas availablerdquo projected levels of public financial resources to be provided in the future to developing countries (Article 95) and support for developing countries mobilized through public interventions (Article 97) Developing countries are ldquoencouragedrdquo to do so voluntarily

At COP 22 a process will be launched to identify the biennial information about future financial support required from developed countries (Adopting decision sect55) Information about past support is to be submitted in accordance with the procedures for transparency of action and support to be developed by the APA by CMA 1 (sectsect56 and 91) SBSTA has also been requested to develop accounting modalities for support provided by developed countries (sect57)

The global stocktake will consider information on climate finance efforts provided by developed countries and the Agreement bodies (Article 96)

BALANCE BETWEEN MITIGATION AND ADAPTATION FINANCE

INSTITUTIONAL ARRANGEMENTS

REPORTING ON FINANCE

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 36: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

36

Module 3 | The Paris Agreement

CMA-1 decided in Marrakech that the Adaptation Fund should serves the Agreement CMA 1-3 will address the governance and institutional arrangements safeguards and operating modalities According to the Adopting Decision the Standing Committee on Finance will serve the CMA in the same way that it serves the COP (sect63)

The institutions serving the Agreement must aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support in particular for LDCs and SIDS (Article 99) The adopting decision text also urges these institutions to enhance coordination and delivery of resources (sect64)

Parties are required to ldquostrengthen cooperative action on technology development and transferrdquo (Article 102) The Agreement establishes a technology framework (Article 104) to provide overarching guidance to the work of the Technology Mechanism established under the UNFCCC which will serve the Agreement (Article 103)

The Technology Mechanism created in 2010 already includes a Technology Executive Committee (TEC) tasked with policy analysis recommending actions and facilitating cooperation for technology development and transfer and a Climate Technology Centre and Network (CTCN) to facilitate a network of organizations in order to provide technical assistance to developing countries

The Technology and Financial Mechanisms of the UNFCCC along with other actors or institutions are required to support efforts to accelerate encourage and enable innovation ldquofor collaborative approaches to research and development and facilitating access to technology [hellip] to developing country Partiesrdquo (Article 105)

Support including financial support will also be provided to developing countries for strengthening cooperative action on technology development and transfer at different stages of the technology cycle with a view to achieving a balance between support for mitigation and adaptation The global stocktake will take information related to such support into account (Article 106)

The Agreement emphasizes the capacity building needs of developing country Parties in particular those with the least capacity and those that are particularly vulnerable to the adverse effects of climate change such as LDCs and SIDS (Article 111) It also underlines capacity to implement adaptation and mitigation actions facilitate technology development dissemination and deployment access climate finance educate train and raise public awareness and enable transparent timely and accurate communication of information (Article 111)

Article 10 TECHNOLOGY DEVELOPMENT AND TRANSFER

Article 11 CAPACITY BUILDING

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 37: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

37

Module 3 | The Paris Agreement

The adopting decision also establishes a Paris Committee on Capacity-Building to address capacity gaps and needs both current and emerging in developing countries and to enhance capacity building efforts (sect71) The Committee will annually focus on an area or theme related to enhanced technical exchange on capacity building It will prepare annual technical progress reports on its work (sect80) The decision also launches a workplan for 2016-2020 (sect73) which will be managed by the Committee (sect72)

Sub-national and local level capacity building is highlighted in the Agreement in addition to national-level capacity building through ldquoan effective iterative process that is participatory cross-cutting and gender-responsiverdquo (Article 112)

While all Parties should cooperate to enhance the capacity of developing countries developed countries should also enhance support for capacity building actions in developing countries (Article 113) All Parties that enhance the capacity of developing country Parties have to regularly communicate on capacity building actions or measures while developing countries should regularly communicate progress made on implementing capacity building plans policies actions or measures (Article 114)

COP-22 adopted a decision on the initial institutional arrangements for capacity building (Article 115)

This short Article simply states that Parties have to cooperate in taking measures as appropriate to enhance climate change education training public awareness public participation and public access to information recognizing the importance of these steps with respect to enhancing actions under the Agreement

The Agreement establishes ldquoan enhanced transparency framework for action and support with built-in flexibility which takes into account Partiesrsquo different capacities and builds upon collective experiencerdquo (Article 131) Common modalities procedures and guidelines for the transparency of action and support will reflect this flexibility and be adopted by CMA (Articles 132 and 1313)

The enhanced framework will recognize the special circumstances of LDCs and SIDS and be implemented in a ldquofacilitative non-intrusive non-punitive manner respectful of national sovereignty and avoid placing undue burden on Partiesrdquo (Article 133)

It will build on the transparency arrangements under the UNFCCC drawing on the experience of national communications biennial reports and biennial update reports international assessment and review and international consultation and analysis (Article 134)

Article 12 EDUCATION TRAINING AND PUBLIC AWARENESS

Article 13 TRANSPARENCY

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 38: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

38

Module 3 | The Paris Agreement

The purpose of the framework for transparency of action is to provide a clear understanding of climate change action including clarity and tracking of progress towards achieving the mitigation NDCs and adaptation actions to inform the global stocktake (Article 135)

The purpose of the framework for transparency of support is to provide clarity on support provided and received by ldquorelevant individual Partiesrdquo for mitigation adaptation finance technology development and transfer and capacity building (Articles 4 7 9 10 and 11) and ldquoto the extent possiblerdquo provide a full overview of aggregate financial support provided to inform the global stocktake (Article 136)

Under the framework for transparency of action each Party has to regularly provide a national greenhouse gas inventory prepared using methodologies approved by the Intergovernmental Panel on Climate Change (IPCC) and agreed by the CMA and information necessary to track progress made in implementing and achieving its mitigation NDC (Article 137)

Each Party should also provide information related to climate change impacts and adaptation as appropriate (Article 138)

Developed countries and others providing support should provide information on support provided on finance technology and capacity building (Article 139) Developing countries meanwhile should provide information on support needed and received (Article 1310)

All Parties except LDCs and SIDS will have to submit the information set out in Articles 137 to 139 as appropriate no less frequently than on a biennial basis (sect90) LDCs and SIDS may submit this information at their discretion (sect90)

The adopting decision agrees to establish a Capacity-building Initiative for Transparency to build institutional and technical capacity and support developing country Parties upon request in meeting enhanced transparency requirements (sect84)

TRANSPARENCY OF ACTION AND OF SUPPORT

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 39: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

39

Module 3 | The Paris Agreement

The information provided under Articles 137 and 139 will undergo a technical expert review (Article 1311) Developing countries that lack capacity will be provided assistance to identify capacity building needs The review will consider any support provided by the Party as relevant and the implementation and achievement of its NDC (Article 1312) It will identify areas of improvement and include a review of the consistency of the information with the modalities procedures and guidelines and pay particular attention to respective national capabilities and circumstances of developing countries (Article 1312)

Countries will also participate in a facilitative multilateral consideration of progress with respect to efforts on finance and the implementation and achievement of their respective NDCs (Article 1311)

Support will be provided to developing countries for implementing their obligations related to transparency (Article 1314) and also for the building of their transparency- related capacity on a continuous basis (Article 1315)

TECHNICAL REVIEW

MULTILATERAL CONSIDERATION

The CMA will periodically take stock of the implementation of the Paris Agreement to assess collective progress towards achieving the purpose of the Agreement and its long-term goals ndash a process called the global stocktake (also referred to in this course as the stocktake)

The stocktake will be carried out in a comprehensive and facilitative manner considering mitigation adaptation and the means of implementation and support and in the light of equity and the best available science

The first stocktake will take place in 2023 and then every five years thereafter unless otherwise decided by the CMA (Article 142) The adopting decision also decides to convene a facilitative dialogue among countries in 2018 to take stock of collective progress and inform the preparation of NDCs (sect20 )

Article 14 GLOBAL STOCKTAKE

Illustration of mandates and provisions related to the Global Stocktake referred to in Art 14 of the Paris Agreement

GLOBAL STOCKTAKE (GST)

General ndash Art 141 bull Assess collective progress towards the Agreementrsquos purpose (Art 2) and its long-term goalsbull In a comprehensive facilitative manner bull In light of equity and best available science

bull Consider mitigation adaptation and means of implementation and supportSpecific ndash Adaptation ndash Art 714 bull Recognize developing country adaptation effortsbull Enhance implementation of adaptation action taking into account Partiesrsquo adaptation communicationsbull Review adequacy amp effectiveness of adaptation action amp support bull Review overall progress in achieving the global adaptation goal

- Information on mobilization amp provision of support (sect 99 aiii)- Finance Relevant info from developed countries andor Agreement bodies (Art 96)

- Technology Available info (Art 106)

- Information on state of adaptationefforts support experience priorities from adaptation communication ref to in Art 710 Art 711 and reports per Art 138 (sect 99 aii)

- Information on the overall effect of NDCs (sect 99 ai)

bull Latest IPCC reports (sect 99 b) bull Reports of the SBs (sect 99 c) bull Transparency framework (Art 13 in particular 135-1312)

SOURCES OF INPUT (APA to identify including) (sect 99)

Methodologies for reviewing adequacy amp effectiveness of adap action amp support

(AC+LEG in collab with SCF sect45b)

General How IPCC assessments can inform GST (SBSTA advice sect100)

Modalities to recognize developing countriesrsquo adap efforts as per

Art 73 (AC+LEG to develop sect 41)

Modalities for periodic assessment of support to Technology Mechanism

(SBI sect 69-70)

MODALITIES (APA to develop sect 101)

Relevant mandates

Art 142 bull CMA to undertake GST bull In 2023 and every five years thereafter unless otherwise decided by CMA (See also Art 141 and 714 above)

Specific

Other relevant mandates and provisions (eg

sectsect 42 43 52 55 56 57 68 80 90 91 94)

OUTCOMEGENERAL - Art 143 Shall inform Parties in bull Updating and enhancing their actions and support and bull Enhancing international cooperation

SPECIFIC bull NDCs ndash Art 49 Each Party shall communicate a NDC every 5 years and be informed by the outcomes of the GSTbull Other outcomes including any relevant adaptation-specific outcomes (in line with Art 714 (see above) and relevant modalities and

methodologies being developed (see MODALITIES above eg sect 41 and sect 45b))

Abbreviations Art = Article of the Paris Agreement sect = paragraph of Decision 1CP21 AC = Adaptation Committee adap = adaptation APA = Ad Hoc Working Group on the Paris Agreement collab = collaboration CMA = Conference of the Parties serving as the meeting of the Parties to the Paris Agreement GST = Global Stocktake IPCC = Intergovernmental Panel on Climate Change LEG = Least Developed Countries Expert Group NDC = nationally determined contribution SCF = Standing Committee on Finance SBSTA = Subsidiary Body for Scientific and Technological Advice SBI = Subsidiary Body for Implementation

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 40: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

40

Module 3 | The Paris Agreement

The outcome of the stocktake will inform Parties in updating and enhancing in a nationally determined manner their actions and support in accordance with the relevant provisions of the Agreement as well as in enhancing international cooperation for climate action

The stocktake is meant to assess ldquocollective progressrdquo and not the activities of individual Parties However the review of individual national implementation efforts should also ldquoinform the global stocktakerdquo (Articles 135 and 136) As a result the precise scope of the stocktake ndash for instance to what extent it focuses on the promised NDCs (in different areas) or a subsequent assessment of their actual achievements ndashwill have to be further defined by the CMA

The Kyoto Protocol required Parties to address cases of non-compliance (Article 18 of the Protocol) As a result Parties subsequently established a compliance mechanism with a facilitative and an enforcement branch to facilitate promote and enforce compliance In comparison compliance under the Paris Agreement is non-punitive and focuses solely on facilitating implementation and promoting compliance through a facilitative committee

The facilitative committee will report annually to the CMA and the modalities and procedures for the functioning of this committee will be adopted by CMA 1 (Article 153)

The adopting decision further states that the committee will consist of 12 members with recognized competence in relevant scientific technical socioeconomic or legal fields and will be elected by the CMA on the basis of equitable geographical representation Two members will be chosen from each from the five regional groups of the United Nations and one member each will be chosen from the LDCs and SIDS while taking gender balance into account (sect102)

The APA has been requested to develop modalities and procedures for the effective operation of the committee for consideration and adoption by CMA 1 (sect103)

PURPOSE OF THE STOCKTAKE

FACILITATIVE AND NON-PUNITIVE

COMPOSITION OF THE COMMITTEE

Article 151 establishes a mechanism to facilitate implementation of and promote compliance with the provisions of the Paris Agreement

The mechanism will consist of an expert-based facilitative committee that will function in a transparent non-adversarial and non-punitive manner and will pay particular attention to the respective national capabilities and circumstances of Parties (Article 152)

Article 15 FACILITATING IMPLEMENTATION AND COMPLIANCE

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 41: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

41

Module 3 | The Paris Agreement

The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) will be the governing body of the Agreement (Article 161) The CMA is mandated to keep the effective implementation of the Agreement under review and take the decisions necessary to promote its effective implementation For that purpose it can establish subsidiary bodies and exercise other functions deemed necessary for the implementation of the Agreement (Article 164)

The rules of procedure of the COP and the financial procedures applied under the UNFCCC will apply to the Agreement with necessary changes unless the CMA decides otherwise (Article 165) Thus the draft rules of procedure of the COP and its subsidiary bodies which have never been adopted but are applied (with the exception of Rule 42 on voting) will govern the proceedings of the CMA except as may be decided by the CMA

While COP decisions can have a normative character for institutions and bodies of the UNFCCC process (for instance the Secretariat or mechanisms under its guidance such as the GCF) it is generally recognized that they are not binding on the Parties in the absence of an express mandate (to take legally binding decisions) This also applies to the powers of the CMA In other words it will operate in the same manner as the CMP and meetings will be convened in conjunction with the COP (Article 166) An extraordinary session of the CMA requires the support of at least one third of the Parties (Article 167)

The UNFCCC Secretariat will serve as the Secretariat of the Agreement (Article 171) The Secretariatrsquos functions and the arrangements made for its functioning shall be those assigned to it under Article 8 of the UNFCCC under the Paris Agreement and by CMA (Article 172) This includes the preparation of meetings and reports providing assistance to Parties and coordinating work with other international institutions Under the Agreement the Secretariat is also required among others things to maintain the public registries for NDCs and adaptation communications and to receive certain notifications (for instance on collaborations and on the convening of CMA sessions)

The two permanent subsidiary bodies of the UNFCCC the SBSTA and the SBI will also serve the Paris Agreement The Agreement itself does not assign any specific tasks to the subsidiary bodies and only states that their functioning will be governed by the application of the relevant UNFCCC provisions (Articles 9 and 10) with the necessary changes applied Article 18 repeats the language of the Kyoto Protocol almost verbatim

Article 16 CMA

Article 17 SECRETARIAT

Article 18 SUBSIDIARY BODIES

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS

Page 42: CLIMATE CHANGE INTERNATIONAL LEGAL REGIME · CLIMATE CHANGE INTERNATIONAL LEGAL REGIME ABOUT THE COURSE DISCLAIMER The Climate Change International Legal Regime course is based on

42

Module 3 | The Paris Agreement

Other subsidiary bodies or institutional arrangements of the UNFCCC will also serve the Agreement should the CMA so decide The Agreement specifically identifies institutional arrangements under the UNFCCC (eg the WIM the Financial Mechanism and the Technology Mechanism) that will in future operate under the new Agreement

However the operation of subsidiary bodies and other institutional arrangements established by or under the Convention other than those referred to in the Agreement have not been as explicitly defined Should the CMA decide to bring other bodies and institutions into the fold of the Agreement it can (within the general scope of the Agreement) specify their functions and guide their activities (Articles 191 and 192)

Article 19 OTHER SUBSIDIARY BODIES AND INSTITUTIONAL ARRANGEMENTS